Employer of Record in Australia

In the age of remote work, e-square makes it easy for businesses to hire Australian employees without needing a physical presence in the country.

When hiring in Australia, businesses need to be aware of the country’s strict labor laws. From minimum wage requirements to complex tax regulations, the hiring process can be challenging. EOR services streamline this process, ensuring all legal requirements are met while maintaining the flexibility to hire the talent you need.

e-square EORs create employment contracts that respect employee rights, ensuring compliance with Australia's Fair Work Act, which governs employee conditions, rights and termination processes.

Australia's labor laws are comprehensive, covering aspects like minimum wage, working hours, overtime and employee benefits. These laws are enforced by the Fair Work Commission, which ensures that employees' rights are upheld.

Standard working hours in Australia are typically 38 hours per week, with any hours worked beyond that considered overtime. Different industries may have varying overtime rules, and an EOR ensures that your business complies with these regulations.

Australia has one of the highest minimum wages globally. As of 2024, the national minimum wage is AUD $23.23 per hour. Employers must comply with this wage standard, which may vary by industry or employee age.

e-square handles employee tax payments, ensuring compliance with tax regulations.

As of last update for 2023-2024, the personal income tax rates for Australia’s residents are as follows:

• For the First tax bracket 0 - $18,201 of chargeable income Tax: 0%
• For the Second tax bracket $18,201 - $37,000 of chargeable income Tax: 16 %
• For the Third tax bracket $37,000 - $90,000 of chargeable income Tax: 30 %
• For the Fourth bracket tax above $13,500 - $180,000 of chargeable income Tax: 37 %
• Above $180,000 chargeable income Tax: 45 %

Australian payroll & Tax systems are complex, requiring adherence to tax regulations, superannuation (pension) contributions, and fringe benefits tax (FBT). An EOR simplifies payroll processing and tax filings, ensuring accuracy and compliance.

While Australia has a public healthcare system, some employees may require private health insurance. e-square EOR ensures that all benefits, including health insurance and other perks are managed efficiently.

Employers in Australia must contribute to employees' superannuation funds 10% and withhold taxes 10% to 30%. e-square manages these tasks, ensuring that your business meets all its tax obligations.

Employees are entitled to 10 days of paid personal leave per year, which can be used for illness or caring for family members.

Australia offers generous leave entitlements, including paid maternity, paternity and sick leave. An e-square ensures that employees receive these benefits according to local laws.

Australian employees are entitled to paid vacation leave. An e-square tracks and manages leave entitlements, ensuring compliance with legal requirements.

We offer comprehensive compensation and benefits solutions tailored to your business needs. From salary structuring to retirement plans, we help you design competitive compensation packages that attract and retain top talent.

e-square Employer of Record and PEO services are designed to make your expansion into Australia as smooth as possible. We handle the complexities of Australian labor laws, allowing you to concentrate on your business's growth and success.

Employment Termination Laws Terminating employees in Australia requires careful adherence to the law. An e-square ensures that terminations follow legal guidelines, minimizing the risk of unfair dismissal claims.

Severance Packages and Final Pay Employees terminated in Australia may be entitled to severance pay. An e-square calculates severance packages based on Australian regulations and ensures that all final payments are processed correctly.